The unemployment rate in Indonesia is alarming. Every time there is a job fair or job opening, many job seekers come in droves - far more than those who will be hired.

Earlier this week, the government launched a paid internship program for tens of thousands offresh university graduates. The program provides an opportunity to work for six months with a salary equivalent to the provincial minimum wage (UMP).

The paid internship program is one of the government's 8+4+5 economic stimulus packages. Coordinating Minister for Economic Affairs Airlangga Hartarto said that this program will be run simultaneously throughout Indonesia with collaboration between the central government, local governments, universities, and the industrial sector.

Paramadina University economic observer Wijayanto Samirin said that this paid internship is considered quite promising and can reduce unemployment if taken seriously.

"This can be a short-term solution to reduce unemployment. This program makes college graduates eager to work because they are paid so that it has an impact on improving the quality of work," he told SUAR in Jakarta (17/9).

Wijayanto hopes that with this program, the Indonesian workforce can be more competitive.

Head of the Central Statistics Agency (BPS) Amalia Adininggar Widyasanti said that the number of unemployed people as of February 2025 was 7.28 million people. This figure increased by 1.11% compared to February 2024.

"Compared to February 2024, as of February 2025 the number of unemployed people increased by 83,450 people, which is an increase of approximately 1.11%," Amalia said.

Started in the fourth quarter of 2025

Coordinating Minister for Economic Affairs Airlangga Hartarto said that the implementation of the Fresh Graduate Internship Program is scheduled to begin in the fourth quarter of 2025, or around October to December 2025. The budget prepared by the government reached Rp 198 billion for the first phase.

This program is open to all companies, both private and state-owned, who wish to cooperate in providing internship positions. The government hopes that through this program, new graduates can be better prepared to face the world of work while reducing the number of educated unemployment in Indonesia.

"One of the things we also encourage is the link-and-match between fresh graduates to enter employment. Well, the government will give 6 months of salary equivalent to UMP. So, 10% of fresh graduates will immediately enter the workforce with link-and-match," said Airlangga at the Presidential Palace, Jakarta (15/9).

The terms and conditions for participants who want to join this Fresh Graduate Internship Program are fresh graduates or graduates of a maximum of one year before. There is no age limit, so graduates who are over 23 years old-24 years old can still join the internship. The internship period lasts for six months.

Participants will receive a salary equivalent to the UMP in their respective provinces. The first phase quota is limited to 20,000 participants, and the placement of participants is adjusted to regional labor needs. For 3T areas (outermost, frontier, underdeveloped), the central government will take over the placement.

For graduates who have passed the one-year period after graduation, the government provides another route in the form of skills improvement training through the Ministry of Manpower.

Private support

Chairman of the Association of Indonesian Export Companies (GPEI) Benny Soetrisno supports the fresh graduate internship program designed by the government because it can reduce unemployment while benefiting companies.

The government has prepared a budget for this apprenticeship program, so employers do not incur costs. This program also indirectly benefits the company. Because, by paying apprentices, they will bring out their best qualities.

"This internship program is very positive. It's good for the country because unemployment is reduced, and it's good for the company because college graduates who are apprentices can give their best performance," said Benny when met at the SUAR Roundtable event in Jakarta (18/9).

He said the fresh graduate internship program could also increase consumer purchasing power in Indonesia amid the global economic downturn.

One of the fresh graduate interns who supports this program is Ivo. He started his internship program in October this year at PT Indosat Ooredoo, coinciding with the government's fresh graduate internship program.

"I am happy and excited that internships are paid by the government. This can improve the quality of work," Ivo told SUAR in Jakarta (18/9).

He said that the money earned from this program will be saved. In addition to earning income, he also gained experience in the world of work.